The Brunelle shipyard leases a harbour crane. The lease, for 6 years, provides that ownership of the crane will transfer to Brunelle at the end of the lease. The right-of-use asset has a cost of 420,000; the useful life of the crane is 12 years. Brunelle depreciates on a straight-line basis (method chosen). Record the annual depreciation charge.
- Cost of the right-of-use asset
- 420,000
- Lease term
- 6
- Useful life of the crane
- 12